Corrective Action Plans

Reviewing the fund balance monthly and purchasing necessary supplies and staff to keep the balance down.

Finding 2025-001, Reporting- Significant deficiency in internal controls over compliance Cause: The finding resulted from the lack of a formalized, documented review process to verify the accuracy of claim data between Skyward, PrimeroEdge, and TXUNPS. Historically, the claim reporting relied on single-entry verification without a defined cross-check procedure or document retention system to confirm alignment across platforms. Corrective Action: NYOS Charter School has implemented a new monthly verification process to ensure accuracy and transparency in the meal count reporting workflow. - The PEIMS Manager will generate the Average Daily Attendance (ADA) report from Skyward each month. - The Food Service Manager will use this report to enter claim data into PrimeroEdge. - The Director of Operations will then cross-reference the claim information from PrimeroEdge with the ADA report from Skyward before entering final claim data into TXUNPS. - Copies of the ADA report, the PrimeroEdge claim summary, and the TXUNPS submission confirmation will be downloaded and stored in the Food Services Google Drive for audit documentation and ongoing internal control review. - Staff involved in this process will receive annual training on verification procedures, documentation standards, and data integrity best practices. Timeline: Updated verification process implemented in October 2025; full rollout and training completed by December 2025. Responsible Party: - Chief of Operations & HR -Director of Operations - PEIMS Manager - Food Service Manager Monitoring: Quarterly internal reviews will be conducted by the Chief of Operations & HR to ensure consistent application of the cross-verification process and proper retention of supporting documentation in the Food Services Google Drive.

Finding Type: Significant Deficiency. Name of Contact Person: Dr. Lisa Thomas, Superintendent. Recommendation: We recommend the District expand their internal controls to require a responsible official to review the daily meal count reports for accuracy prior to submission of the reports to the Illinois State Board of Education. Corrective Action: Daily meal counts will be rectified by administration on a monthly basis. Proposed Completion Date: Immediately.

Finding Reference: 2025-002 - Special Tests and Provisions — Accountability for USDA Foods— Questioned Costs: None Responsible Person: Todd Frease, CFO Actions & Timelines: 1. Valuation Policy (within 30 days from report issuance): Adopt an approved USDA valuation method (WBSCM price or rolling average) and document the policy. 2. Formal Inventory SOPs (within 60 days of report issuance): Issue written SOPs covering count preparation, reconciliation, and documentation retention per 7 CFR §250.19. 3. Training (within 60 days): Train finance and inventory staff on valuation requirements and new SOPs. 4. Annual Monitoring (ongoing): Review valuation application and inventory reconciliations annually and report results to leadership. Anticipated Completion Date: Initial policy and SOPs within 60 days of report issuance; ongoing monitoring thereafter.

FINDING 2025-004 Finding Subject: Child Nutrition Cluster - Allowable Costs/Cost Principles Federal Agency: Department of Agriculture Federal Program(s): School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Numbers: 10.553, 10.555, 10.559 Federal Award Numbers and Years: FY2024, FY2025 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principals Audit Finding: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Costs Principles compliance requirement. The School Corporation entered into a Fixed Price meal Contract with a food service management company (FSMC). For each meal type, a fixed price was established and billed by the FSMC based on meal counts served. The School Corporation failed to compare the invoices received from the FSMC to the School Corporations software reports to ensure the number of meals invoiced agreed to the meals served. Two invoices with the FSMC were selected for testing totaling $213,048.96. . Contact Person Responsible for Corrective Action: Erin Roach Contact Phone Number and Email Address: 765-653-3119 eroach@sputnam.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The food service director will compare the invoices received from the FSMC to the School Corporations software reports prior to submission for payment. Anticipated Completion Date: February, 2026

Corrective Action Plan: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2025-2026 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to increase to $16.00 per hour and entry level wages have increased per contract. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen within the next planned capital project. We are currently in the planning phase of our next capital project with a vote anticipated during the 2025-2026 fiscal year. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.

The District has separated duties to the extent possible and has implemented compensating controls to monitor the accounting activities

Catoosa Public schools accecpts full responsibility for the deficiences identified in this audit finding related to the Child Nutrition program. The district acknowledges that internal controls surrounding manual adjustments to student meal accounts were insufficient and that adjustments totaling approximately $36,740 were made without adequate documentation. The District has implemented a corrective action plan that is available upon request because it could not be properly upload to this excel spreadsheet.

Finding 2025-001 Significant Deficiency in Internal Control over Compliance - Reporting AL# 10.553 & 10.555 – Child Nutrition Cluster Corrective Action Plan Employee re-alignment and training was initiated beginning in August 2025, as well as revision to the review process for meal counts to include a second review prior to submission. In addition, the new system was evaluated for proper configuration to mitigate further issues. Person(s) Responsible M. Thorne, Operations Coordinator Anticipated Completion Date Corrective actions were substantially completed by October 2025.

Child Nutrition Cluster – Assistance Listing No. 10.553, 10.555 and 10.559 Recommendation: The District should review their internal control process for free and reduced meal applications to ensure that the proper controls are being implemented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The District will revise their internal control process to ensure that the District's controls for free and reduces meal applications are being implemented. Name(s) of the contact person(s) responsible for corrective action: Tim Widiker, Superintendent. Planned completion date for corrective action plan: December 2025.

The Food Services Division is committed to providing great food and maintaining rigorous internal controls and continuous monitoring to safeguard program integrity. The discrepancy found at one school is not representative of our program, as we do ongoing random audits of submitted claims to verify the accuracy of submitted data. These layered oversight measures provide multiple levels of verification to minimize and eliminate the likelihood of reporting errors and ensure compliance with applicable state and federal program requirements. At Annalee El, the school with an overclaim of 104 meals, we found that the manager had moved from the school, and in the interim, our review protocol fell short. Given the large volume of meals served annually across the District, the over-claim discrepancy identified during the FY 24-25 audit represents an isolated incident rather than a systemic deficiency in LAUSD Food Services operations. The claim verification process followed at schools is stated below: • The Food Service Manager conducts a weekly review of the prior week’s daily meal count documents to identify and correct any discrepancies. • The Food Service Manager generates and reviews a weekly Meal Counts Report from the Cafeteria Management System (CMS) to verify recorded data. • The Food Service Manager compares the daily meal count documents against the five-day Meal Counts Report to ensure data alignment and accuracy. • The Manager performs an additional verification by reconciling daily meal count documents with the five-day Meal Counts Report from CMS. Any identified errors are corrected immediately in CMS. This reconciliation process is completed prior to the submission of claims to the Child Nutrition Information and Payment System. • The Area Food Services Supervisor (AFSS) and Regional Manager (RM) conduct random weekly reviews of meal counts for accuracy, utilizing reports provided by Central Office staff to support this verification process. • Central Office staff perform a monthly audit of meal count records and prepare a draft report for review by the AFSS and RM to validate findings and confirm accuracy. Retraining of the staff at Annalee El has been completed, and the manager and supervisor teams are verifying that the above protocol is being followed consistently at all schools. Name: Manish Singh Title: Director, Food Services Division Telephone: (213) 241-2993

The Food Service Director has implemented a corrective plan focused on (1) re-training on production record requirements, (2) real-time verification and monitoring, (3) escalation for noncompliance, and (4) sustained oversight until compliance is consistent. The District will maintain documentation of monitoring and follow-up to demonstrate that corrective actions are in place and effective. Implementation: December 1, 2025

FINDING 2025-002 Contact Person Responsible for Corrective Action: Christine Clarahan Contact Phone Number: 219-663-3371 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: A monthly checklist was created that will be used by those in the Food Services administration team office. The checklist includes the task, line for initials and date that task was completed. Tasks include Direct Certification download, spot checking after the Direct Certification download, verifying Food Service deposits, and other monthly tasks. Anticipated Completion Date: November 18, 2025

Finding No: 2025-004 Condition: The District receives Title I funding and determines eligibility for schoolwide programs based on attendance numbers derived from free and reduced lunch counts. During the audit, we noted that the district’s process for compiling these attendance numbers involves the grant manager obtaining a report from the Business Office, which is generated from the food service platform as of a specific day. However, the district was unable to reproduce the report used to complete the Title I application and supporting documentation for the reported figures was not available for review. Plan: The District will maintain all reports used to compile attendance figures for the Title I grant. Anticipated Date of Completion: June 30, 2026 Name of Contact Person: Mark Orszula, CSBO

Finding No: 2025-003 Condition: The District does not have an adequate review process in place for meal count claims prior to submission. Claims prepared by one individual are submitted without independent verification. As a result, the district reported an incorrect lunch count for January 2025. This error appears to be isolated to January; however, it would likely have been prevented if a review process were in place. Plan: The District will implement a system in which meal count claims will have secondary approval by the CSBO. Anticipated Date of Completion: June 30, 2026 Name of Contact Person: Mark Orszula, CSBO

The District will review the work performed by the individual preparing the reports before submission

The District will implement additional internal controls to ensure that all household income is properly included in the eligibility determination process for free and reduced-price meals. The Food Service Director (or authorized designee) will perform a second-level review of all applications prior to final approval, focusing on verification that all sources of income - including income earned by students - are included in the total household calculation. The District will update its internal checklist and train staff responsible for reviewing meal applications to verify that each application is complete, income sources are clearly identified, and supporting documentation (if applicable) has been properly considered. The Food Service Director will conduct a mid-year self-audit of eligibility determinations to confirm accuracy and compliance with 7 CFR 245.6 requirements. The District will maintain documentation of reviews and training to support compliance efforts in furter audits.

12/7/2026 Cognizant or Oversight Agency for Audit, Codman Academy Charter Public School and Affiliate (the School) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm : AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit period: July I, 2024 - June 30, 2025 The finding from the June 20, 2025 Schedule of Findings and Questioned Costs is discussed below. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2025-001 Required Payroll Forms Recommendation: AAFCPAs recommends the School implement a standardized checklist and conduct periodic internal reviews of onboarding documentation to ensure all required forms are properly completed and retained in accordance with Federal regulations. Action Taken: As of January, 2026 the staff member responsible for staff on boarding and payroll processing is no longer employed at the School. Codman, with a new staff person in charge of these tasks has instituted a standardized checklist for on boarding, has performed a backward looking audit of employee files and will conduct internal periodic reviews for completeness and accuracy. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please tell Derrick Cielsa, Executive Direct as 617-287-0770 Sincerely yours, Derrick Ciesla Excutive Director

12/7/2026 Cognizant or Oversight Agency for Audit, Codman Academy Charter Public School and Affiliate (the School) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm : AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit period: July I, 2024 - June 30, 2025 The finding from the June 20, 2025 Schedule of Findings and Questioned Costs is discussed below. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2025-001 Required Payroll Forms Recommendation: AAFCPAs recommends the School implement a standardized checklist and conduct periodic internal reviews of onboarding documentation to ensure all required forms are properly completed and retained in accordance with Federal regulations. Action Taken: As of January, 2026 the staff member responsible for staff on boarding and payroll processing is no longer employed at the School. Codman, with a new staff person in charge of these tasks has instituted a standardized checklist for on boarding, has performed a backward looking audit of employee files and will conduct internal periodic reviews for completeness and accuracy. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please tell Derrick Cielsa, Executive Direct as 617-287-0770 Sincerely yours, Derrick Ciesla Excutive Director

Management has reviewed this finding and indicated it will revise its procedures to ensure corrective action is taken.

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559, 10.582 Contact Person: Monique Mata, Chief Financial Officer Anticipated Completion Date: August 31, 2026 Planned Corrective Action: The District was not aware of the change in calculating indirect cost for Child Nutrition Cluster. The District will review the indirect cost calculation for the affected fiscal year and confirm the amount of overcharged indirect costs. The District will determine the appropriate method for reimbursing or adjusting the $189,745 overcharge to the Child Nutrition Program. Any required repayment or journal entry correction will be completed. The District will update its indirect cost rate guidance to exclude food service management company payments exceeding $50,000 from the indirect cost base. The District will conduct an annual internal review of indirect cost calculations to ensure continued compliance with USDA and ADE guidance. The District will maintain communication with ADE School Finance and Health & Nutrition Services to stay current on guidance updates.

Response and Corrective Action Plan: The District will annually prepare the indirect cost charged to the program based on the actual fiscal year trial balance and the federal government MTDC requirements. The calculation process will implement a procedure to consider other adjustments necessary to be in compliance. The District will provide an estimate to the Board each June to ensure proper approval of fund transfers.

Significant Deficiency in Internal Control over Financial Reporting Recommendation: We recommend the District continue to improve its processes and procedures surrounding reporting of claims meal summaries. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work to develop processes and procedures to ensure reports tie to claims summaries for meal counts. Name of the contact person responsible for corrective action: Shari Thompson Planned completion date for corrective action plan: June 30, 2026.

Response and Corrective Action Plan: The District will annually prepare the indirect cost charged to the program based on the actual fiscal year trial balance. The District will provide an estimate to the Board each June to ensure proper approval of fund transfers.

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS AUDIT Material Weakness U.S. Department of Education- Child Nutrition Cluster- AL 10.553 / 10.555 Finding No.: 2025-006 Condition: District failed to submit annual verification report and monthly claim reports for Child Nutrition Program Cluster in accordance to Illinois School Code. Recommendation: The District should review all reports to ensure they are submitted timely. Action Taken: The District concurs with the recommendation and completed a Corrective Action Plan with ISBE in accordance with the 3 year exception policy. District will work to ensure the Corrective Action Plan approved by ISBE is followed.